Image copyrightScottish FriendlyImage caption
Chief executive Fiona McBain said the mutual had shown growth "on all fronts" last year

Financial services group Scottish Friendly has reached a milestone of £1bn of funds under management for the first time.

The Glasgow-based mutual said its managed funds climbed by 8% last year to almost £1.08bn.

Total sales in 2014 also rose by 5% to £21.6m.

Scottish Friendly said strong growth from partnerships, such as one with Sun Life Direct, helped to increase sales and membership numbers.

In February this year, the mutual announced a proposed takeover of Marine and General Mutual (M&GM) in a move that will double its assets to more than £2bn.

The transfer is due to complete on 31 May, subject to final approval.

'Great year'

Chief executive Fiona McBain said: "Scottish Friendly has had a great year and we are very pleased with the progress we have made. Significant business growth continues to build the foundations for long-term success.

"The transfer of M&GM to Scottish Friendly will be the biggest in the group's history. When complete, it will be a landmark moment for our business that will bring great opportunities and significant economies of scale.

"The organisation has adopted a long-term three-part strategy of mergers and consolidations, organic growth and business process outsourcing.

"We have shown growth on all fronts over the past year and expect to continue to be well-placed to seek out new opportunities in the future."